Stokley Intelligence · Illustrative situation
Industrial Small-Bay Acquisition With Partial Vacancy
What makes a partially vacant small-bay industrial acquisition financeable on an asset-based, short-term basis?
Illustrative scenario only—not an actual funded Stokley Capital deal or a commitment to lend.
Borrower question
Does the in-place tenancy and real estate basis provide enough support while the buyer leases the remaining bays?
A partially vacant building is not underwritten as though every bay were occupied. Stokley Capital would start with the existing leases and collections, then test the vacant units, physical utility, required work, leasing budget and exit against the buyer’s actual basis and requested first-position loan.
What gets underwritten
Property facts before projections.
- 01Tenant roster, collections, lease expirations and concentration by tenant or use
- 02Bay sizes, loading, clear height, power, access and divisibility
- 03Condition, environmental history and immediate property work
- 04Evidence for asking rents, downtime and leasing costs on the vacant bays
- 05Purchase basis, equity contribution and the requested first-position loan amount
Potential deal breakers
Issues that can stop the review.
- 01No credible takeout or sale path after the proposed lease-up period
- 02Environmental, access or building-function issues that are not defined and funded
- 03A business plan that assumes full occupancy without a leasing budget or market support
- 04Insufficient control of the acquisition or unresolved liens that prevent a first-position closing
Document checklist
What to send first.
A concise package helps establish the property, current capital structure and remaining work.
- 01Purchase contract, title information and sources-and-uses schedule
- 02Current rent roll, leases, collections and trailing operating statements
- 03Site plan, unit schedule, property photos and building specifications
- 04Environmental and property-condition reports available to the buyer
- 05Leasing pipeline, comparable asking rents and tenant-improvement budget
- 06Borrower ownership, experience and proposed exit support
Exit logic
How the short-term loan gets repaid.
The exit must be supported by a realistic property-level outcome, not simply more time.
- 01Permanent refinance after lease-up and operating history support conventional underwriting
- 02Sale after occupancy, tenant diversification and property condition have improved
- 03Portfolio or sponsor recapitalization with a defined source to retire the short-term loan
Have a live situation?
Send the asset, requested amount, timing and exit.
Stokley Capital reviews first-position, business-purpose commercial real estate requests nationwide, subject to state requirements.